Simon Coveney (Cork South Central, Fine Gael)

We have had this debate before, and I will continue to make the same point, particularly with regard to the electricity market; I accept that the gas market is slightly different. We have a crazy situation in which the ESB could supply households in Ireland with electricity for at least 10% less than the cost of producing it at the moment. Yet it is not allowed to do so because of regulation, in an attempt, as the Minister has clearly outlined, to promote competition and to allow competitors of the ESB in the household market to gain a foothold. In other words, we are waiting for Bord Gáis Energy and Airtricity, which are the two main competitors for the ESB, to get more customers before we will allow the ESB to reduce its prices.

One can consider this from the perspective of the ESB, in which it is not allowed to compete to keep its customers, but more importantly, one can consider it from the perspective of the 2 million households which are paying 10% more for electricity than they should be. If BGE and Airtricity can produce electricity and sell it at a price that is not considered to be anti-competitive or below-cost selling but the main supplier of electricity cannot, we are essentially overcharging households that use the main supplier. That accusation is backed up by all the evidence which suggests that when one compares Ireland to other countries across the EU, Irish households are paying too much for electricity.

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